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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-07870
Pioneer Real Estate Shares
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
Dorothy E. Bourassa, Pioneer Investment Management, Inc.,
60 State Street, Boston, MA 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 742-7825
Date of fiscal year end: December 31
Date of reporting period: January 1, 2009 through June 30, 2009
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO SHAREOWNERS.
Pioneer Real
Estate Shares
- --------------------------------------------------------------------------------
Semiannual Report | June 30, 2009
- --------------------------------------------------------------------------------
Ticker Symbols:
Class A PWREX
Class B PBREX
Class C PCREX
Class Y PYREX
[LOGO]PIONEER
Investments(R)
visit us: pioneerinvestments.com
Table of Contents
Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 8
Prices and Distributions 9
Performance Update 10
Comparing Ongoing Fund Expenses 14
Schedule of Investments 16
Financial Statements 20
Notes to Financial Statements 28
Trustees, Officers and Service Providers 35
Pioneer Real Estate Shares | Semiannual Report | 6/30/09 1
President's Letter
Dear Shareowner,
Stock and bond markets around the globe have been experiencing one of their
most tumultuous periods in history. Investors have witnessed volatility of a
magnitude that many have never before seen. Distance often provides the best
vantage point for perspective. Still, we believe that the benefits of basic
investment principles that have stood the test of time -- even in the midst of
market turmoil -- cannot be underestimated.
First, invest for the long term. The founder of Pioneer Investments, Philip L.
Carret, began his investment career during the 1920s. One lesson he learned is
that while great prosperity affords an advantageous time for selling stocks,
extreme economic slumps can create opportunities for purchase. Indeed, many of
our portfolio managers, who follow the value-conscious investing approach of
our founder, are looking at recent market conditions as an opportunity to buy
companies whose shares we believe have been unjustifiably beaten down by
indiscriminate selling, but that we have identified as having strong prospects
over time. While investors may be facing a sustained market downturn, we
continue to believe that patience, along with staying invested in the market,
are important considerations for long-term investors.
A second principle is to stay diversified across different types of
investments. The global scope of the current market weakness poses challenges
for this basic investment axiom. But the turbulence makes now a good time to
reassess your portfolio and make sure that your investments continue to meet
your needs. We believe you should work closely with your financial advisor to
find the mix of stocks, bonds and money market assets that is best aligned to
your particular risk tolerance and investment objective.
As the investment markets sort through the continuing crisis in the financial
industry, we are staying focused on the fundamentals and risk management. With
more than 80 years of experience behind us, we have learned how to navigate
turbulent markets. At Pioneer Investments, risk management has always been a
critical part of our culture -- not just during periods of extraordinary
volatility. Our investment process is based on fundamental research,
quantitative analysis and active portfolio management. This three-pillared
process, which we apply to each of our portfolios, is supported by an
integrated team approach and is designed to carefully balance risk and reward.
While we
2 Pioneer Real Estate Shares | Semiannual Report | 6/30/09
see potential chances for making money in many corners of the market, it takes
research and experience to separate solid investment opportunities from
speculation.
We invite you to learn more about Pioneer and our time-tested approach to
investing by consulting with your financial advisor or visiting us online at
www.pioneerinvestments.com. Thank you for investing with Pioneer.
Sincerely,
/s/ Daniel K. Kingsbury
Daniel K. Kingsbury
President and CEO
Pioneer Investment Management USA Inc.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These statements should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
Pioneer Real Estate Shares | Semiannual Report | 6/30/09 3
Portfolio Management Discussion | 6/30/09
The first half of 2009 was a volatile period for real estate investments, as
the global recession, deteriorating credit markets, rising unemployment and
waning investor sentiment weighed heavily on the sector, particularly in the
early months of the period. The Federal Reserve Board (the Fed) and the U.S.
Treasury have injected an unprecedented amount of liquidity into the financial
system to stabilize the financial markets, but business sentiment remains
tentative in spite of a strong rally in the spring of 2009. In the following
interview, Matthew Troxell of AEW Capital Management, L.P., the Fund's
subadviser, discusses his strategies for managing the Fund amidst such
uncertainty during the six months ended June 30, 2009.
Q Why did real estate investments struggle during the six months ended June 30,
2009?
A Deteriorating property fundamentals, the dearth of third-party commercial
mortgage capital, the higher cost of available debt, and tightened lending
standards put a damper on commercial real estate transactions, which, in
turn, depressed property valuations. Consequently, real estate investments,
as measured by the Morgan Stanley Capital International (MSCI) U.S. REIT
Index, fell by 35% in the first two months of 2009.
However, with the announcement of more well-defined government initiatives
and more encouraging economic news in the spring of 2009, investor
sentiment shifted into a more adventuresome, bargain-hunting mode --
sharply driving up prices of investments previously shunned in the flight-
to-quality market contraction of late 2008/early 2009. As a result, real
estate securities rebounded during the second quarter of 2009, gaining a
record 30%, according to the MSCI U.S. REIT Index, from April 1 through
June 30. The real estate sector also benefited from gains in the financial
sector and new equity issuance activity, which helped to improve the
financial condition of several real estate investment trusts (REITs) and
reverse some of the negative sentiment toward the real estate sector. U.S.
REITs raised $14 billion in 48 offerings through June 30, 2009, far
exceeding the amount of equity raised in all of 2008.
Q How did the Fund perform for the first half of 2009?
A For the six months ended June 30, 2009, the Fund's Class A shares posted a
total return of -9.73% at net asset value, compared with a -12.43% return
for the Fund's benchmark, the MSCI U.S. REIT Index. During the same period,
the average return of the 239 real estate funds tracked by Lipper, Inc. was
-9.52%. The Fund's outperformance of the MSCI U.S. REIT Index
4 Pioneer Real Estate Shares | Semiannual Report | 6/30/09
largely was attributable to effective stock selection, particularly in the
industrial, regional mall, and office sectors.
Q Which holdings had the most impact on the Fund's performance during the six
months ended June 30, 2009?
A Investments in the office REIT Kilroy Realty, which was vulnerable to
struggling markets in Southern California, and shopping center REIT Kite
Realty Group, which is exposed to developments in Florida, detracted from
the Fund's performance. We continue to believe the companies represent
solid values relative to their peers and are maintaining overweight
positions in both stocks. On the positive side, regional mall REIT The
Macerich Company; office company DuPont Fabros Technology; and industrial
REIT Liberty Property Trust were the top Fund performers over the six-month
period. Our decision to overweight positions in those companies magnified
the impact of their performance on the Fund's results.
Q Could you describe the health of the various property sectors in which the
Fund is invested?
A Despite economic indicators suggesting that the economy could bottom out
before the end of 2009, property-market fundamentals continue to
deteriorate. In the retail sector, property vacancies have been climbing
quickly. While consumer confidence has improved somewhat in recent months,
consumers remain very cautious, and retail spending likely will recover
quite slowly. Office property vacancies are rising nearly everywhere as a
result of weak demand. Markets that are closely tied to the fortunes of
financial employers have been particularly hard hit. While downtown
vacancies were slow to rise, conditions have been deteriorating nearly as
quickly as suburban markets since the middle of 2008. Within the
industrials sector, availability rates are at record levels and show few
signs of improving.
The apartment sector has been influenced by crosswinds in the single-family
housing sector. Rising foreclosures and stricter underwriting standards are
pushing some home buyers and would-be buyers into the renters market.
Conversely, rentals of investor-owned homes and condominiums are offering
housing alternatives to would-be renters. The conditions likely will
prevail until the single-family sector stabilizes. While the pace of home
price declines has begun to slow, prices are likely to continue declining
well into 2010, and perhaps later.
In the hotel sector, occupancies were down by more than 10% in spring 2009,
compared with one year earlier. Previously resilient room rates were also
down markedly, so revenue per available room (RevPAR) is down by more than
20%. Luxury hotels have been particularly hard hit. While hotel
fundamentals should show rapid improvement when the economy recovers due to
the night-to-night nature of their leases, RevPAR is likely to remain
Pioneer Real Estate Shares | Semiannual Report | 6/30/09 5
under pressure as long as both leisure and business customers continue to
limit travel.
Q Given the fallout in the subprime mortgage market, do you anticipate a
similar correction in the commercial real estate market?
A Commercial real estate markets are indeed a risk factor for both lenders and
the broader economy, because they did not begin to deteriorate until the
subprime crisis was well under way. At a minimum, they likely will be a
drag on the economic recovery that we expect to begin before the end of
2009. For commercial real estate, a loss in jobs and income, wavering
consumer and business confidence and increasing levels of indebtedness have
caused many commercial real estate tenants to postpone expansion plans,
delay leasing decisions and, in some cases, close entirely. Real estate
will not begin to see improving fundamentals until well after other sectors
have begun to grow. The bottom line is that for real estate, jobs matter.
Jobs fill office space, create the income that pays apartment rents, allow
consumers to spend money at retailers, and ultimately drive demand for
shipping, transportation and warehouse space.
Moreover, the credit crisis has made it difficult for property owners to
get the capital they need to weather the downturn. Owners unable to get
that capital will need to enter difficult negotiations with lenders in
order either to restructure loans or, in extreme cases, give the keys to
the lenders and walk away from their equity investment. In addition to lost
real estate equity, such outcomes introduce even more stress to already
overburdened lending markets, and in doing so could put the entire recovery
at risk.
While such risks should not be understated, most observers do believe that
the economy will emerge from the recession and into a modest recovery
sometime during the next few quarters. Policymakers are making
unprecedented efforts to stimulate the economy and heal credit markets, and
while many economic indicators are still at recessionary levels, they have
shown substantial improvement in recent months. Due to the difficulty in
financing construction projects, new supply is not a concern in most
property markets. While we believe real estate fundamentals will continue
to deteriorate for some time, a growing economy would do much to put a
floor under the commercial real estate sector and prevent it from dragging
the broader economy back into recession.
Q What is your outlook for the Fund for the balance of 2009?
A The REIT sector has benefited in recent months from overall gains in the
broader equities markets, due to optimism that the worst of the recession
may be past. However, we do expect that REITs will continue to face some
stiff headwinds in the coming months. Underlying real estate fundamentals
remain challenged, unemployment remains at high levels, and company
6 Pioneer Real Estate Shares | Semiannual Report | 6/30/09
earnings likely will remain muted in the near term. Furthermore, REIT
pricing could be subject to further bouts of volatility, which will
continue to be influenced by conditions in the global financial and credit
markets. We'll remain vigilant in our securities selection within each
sector to find the companies that we feel may provide the Fund with the
best relative values and risk-adjusted returns.
Please refer to the Schedule of Investments on pages 16-19 for a full listing
of Fund securities.
The Fund invests in REIT securities, the value of which can fall for a variety
of reasons, such as declines in rental income, fluctuating interest rates, poor
property management, environmental liabilities, uninsured damage, increased
competition, or changes in real estate tax laws. At times, the Fund's
investments may represent industries or industry sectors that are interrelated
or have common risks, making it more susceptible to any economic, political, or
regulatory developments or other risks affecting those industries or sectors.
Past performance is no guarantee of future results, and there is no guarantee
that market forecasts discussed will be realized.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These statements should not be relied upon for any other purposes.
Pioneer Real Estate Shares | Semiannual Report | 6/30/09 7
Portfolio Summary | 6/30/09
Portfolio Diversification
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(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
U.S. Common Stocks 83.8%
Temporary Cash Investments 16.2%
Sector Diversification
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(As a percentage of equity holdings)
[THE FOLLOWING DATA WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Apartment 16.5%
Regional Mall 13.6%
Office 13.4%
Healthcare 12.4%
Industrials 10.4%
Shopping Center 10.4%
Storage 8.1%
Diversified 6.5%
Hotel 5.2%
Triple Net Lease 3.3%
Manufactured Home 0.2%
10 Largest Holdings*
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(As a percentage of equity holdings)
1. Simon Property Group, Inc. 9.14%
2. Equity Residential Property Trust 5.51
3. Public Storage, Inc. 5.21
4. AvalonBay Communities, Inc. 5.04
5. Boston Properties, Inc. 5.01
6. Vornado Realty Trust 4.79
7. Nationwide Health Properties, Inc. 4.37
8. Liberty Property Trust 4.36
9. The Macerich Co. 3.91
10. Host Hotels & Resorts, Inc. 3.89
* This list excludes temporary cash and derivative instruments. Portfolio
holdings will vary for other periods. The holdings listed should not be
considered recommendations to buy or sell any securities listed.
8 Pioneer Real Estate Shares | Semiannual Report | 6/30/09
Prices and Distributions | 6/30/09
Net Asset Value per Share
- --------------------------------------------------------------------------------
- ---------------------------------------------
Class 6/30/09 12/31/08
- ---------------------------------------------
A $ 11.42 $ 13.00
- ---------------------------------------------
B $ 11.28 $ 12.84
- ---------------------------------------------
C $ 11.30 $ 12.86
- ---------------------------------------------
Y $ 11.41 $ 12.98
- ---------------------------------------------
Distributions per Share: 1/1/09-6/30/09
- --------------------------------------------------------------------------------
- ---------------------------------------------------------------
Net
Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
- ---------------------------------------------------------------
A $ 0.2700 $ -- $ --
- ---------------------------------------------------------------
B $ 0.1900 $ -- $ --
- ---------------------------------------------------------------
C $ 0.2100 $ -- $ --
- ---------------------------------------------------------------
Y $ 0.3200 $ -- $ --
- ---------------------------------------------------------------
Pioneer Real Estate Shares | Semiannual Report | 6/30/09 9
Performance Update | 6/30/09 Class A Shares
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Real Estate Shares at public offering price,
compared to that of the Morgan Stanley Capital International (MSCI) U.S. REIT
Index.
Average Annual Total Returns
(As of June 30, 2009)
- ------------------------------------------------------------------
Net Asset Public Offering
Period Value (NAV) Price (POP)
- ------------------------------------------------------------------
10 Years 5.13% 4.51%
5 Years -2.45 -3.60
1 Year -42.52 -45.83
- ------------------------------------------------------------------
Expense Ratio
(Per prospectus dated May 1, 2009)
- -------------------------------------------------------------------
Gross Net
- ------------------------------------------------------------------
2.04% 2.04%
- ------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Real Estate Shares MSCI U.S. REIT Index
6/99 9,425 10,000
9,815 10,337
6/01 11,750 12,771
1,3401 14,822
6/03 13,741 15,405
17,603 19,462
6/05 23,677 25,870
29,196 30,953
6/07 31,988 34,683
27,054 29,777
6/09 15,550 16,753
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 5.75% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The MSCI U.S. REIT Index is a widely used index comprising a broad
representation of the most actively traded real estate trusts, and is designed
to be a measure of real estate equity performance. Index returns assume
reinvestment of dividends and, unlike Fund returns, do not reflect any fees,
expenses or sales charges. You cannot invest directly in the Index.
10 Pioneer Real Estate Shares | Semiannual Report | 6/30/09
Performance Update | 6/30/09 Class B Shares
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Real Estate Shares, compared to that of the Morgan
Stanley Capital International (MSCI) U.S. REIT Index.
Average Annual Total Returns
(As of June 30, 2009)
- ----------------------------------------------------------------
If If
Period Held Redeemed
- ----------------------------------------------------------------
10 Years 4.20% 4.20%
5 Years -3.44 -3.44
1 Year -43.33 -45.52
- ----------------------------------------------------------------
Expense Ratio
(Per prospectus dated May 1, 2009)
- ----------------------------------------------------------------
Gross Net
- ----------------------------------------------------------------
3.57% 3.57%
- ----------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Real Estate Shares MSCI U.S. REIT Index
6/99 10,000 10,000
10,344 10,337
6/01 12,283 12,771
13,896 14,822
6/03 14,139 15,405
17,967 19,462
6/05 23,962 25,870
29,274 30,953
6/07 31,792 34,683
26,620 29,777
6/09 15,084 16,753
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
"If Held" results represent the percent change in net asset value per share.
Returns would have been lower had sales charges been reflected. "If redeemed"
returns reflect the deduction of applicable contingent deferred sales charge
(CDSC). Effective December 1, 2004, the period during which a CDSC is applied
to withdrawals was shortened to 5 years. The maximum CDSC for Class B shares
continues to be 4%. For more complete information, please see the prospectus.
Note: Shares purchased prior to December 1, 2004 remain subject to the CDSC in
effect at the time you purchased those shares. For performance information for
shares purchased prior to December 1, 2004, please visit
www.pioneerinvestments.com.
All results are historical and assume the reinvestment of dividends and capital
gains. Other share classes are available for which performance and expenses
will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The MSCI U.S. REIT Index is a widely used index comprising a broad
representation of the most actively traded real estate trusts, and is designed
to be a measure of real estate equity performance. Index returns assume
reinvestment of dividends and, unlike Fund returns, do not reflect any fees,
expenses or sales charges. You cannot invest directly in an Index.
Pioneer Real Estate Shares | Semiannual Report | 6/30/09 11
Performance Update | 6/30/09 Class C Shares
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Real Estate Shares, compared to that of the Morgan
Stanley Capital International (MSCI) U.S. REIT Index.
Average Annual Total Returns
(As of June 30, 2009)
- ----------------------------------------------------------------
If If
Period Held Redeemed
- ----------------------------------------------------------------
10 Years 4.31% 4.31%
5 Years -3.29 -3.29
1 Year -43.09 -43.09
- ----------------------------------------------------------------
Expense Ratio
(Per prospectus dated May 1, 2009)
- ----------------------------------------------------------------
Gross Net
- ----------------------------------------------------------------
3.10% 3.10%
- ----------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Real Estate Shares MSCI U.S. REIT Index
6/99 10,000 10,000
10,362 10,337
6/01 12,297 12,771
13,920 14,822
6/03 14,173 15,405
18,018 19,462
6/05 24,052 25,870
29,413 30,953
6/07 31,952 34,683
26,789 29,777
6/09 15,246 16,753
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). The performance of Class C shares does not
reflect the 1% front-end sales charge in effect prior to February 1, 2004. If
you paid a 1% sales charge, your returns would be lower than those shown above.
"If Held" results represent the percent change in net asset value per share.
Returns would have been lower had sales charges been reflected. All results are
historical and assume the reinvestment of dividends and capital gains. Other
share classes are available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The MSCI U.S. REIT Index is a widely used index comprising a broad
representation of the most actively traded real estate trusts, and is designed
to be a measure of real estate equity performance. Index returns assume
reinvestment of dividends and, unlike Fund returns, do not reflect any fees,
expenses or sales charges. You cannot invest directly in an Index.
12 Pioneer Real Estate Shares | Semiannual Report | 6/30/09
Performance Update | 6/30/09 Class Y Shares
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Real Estate Shares, compared to that of the Morgan
Stanley Capital International (MSCI) U.S. REIT Index.
Average Annual Total Returns
(As of June 30, 2009)
- ----------------------------------------------------------------
If If
Period Held Redeemed
- ----------------------------------------------------------------
10 Years 5.75% 5.75%
5 Years -1.88 -1.88
1 Year -42.00 -42.00
- ----------------------------------------------------------------
Expense Ratio
(Per prospectus dated May 1, 2009)
- ----------------------------------------------------------------
Gross Net
- ----------------------------------------------------------------
1.02% 1.02%
- ----------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Real Estate Shares MSCI U.S. REIT Index
6/99 10,000 10,000
10,489 10,337
6/01 12,617 12,771
14,460 14,822
6/03 14,923 15,405
19,226 19,462
6/05 25,988 25,870
32,210 30,953
6/07 35,461 34,683
30,149 29,777
6/09 17,487 16,753
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class Y shares are not subject to sales charges and are available for limited
groups of eligible investors, including institutional investors. All results
are historical and assume the reinvestment of dividends, and capital gains.
Other share classes are available for which performance and expenses will
differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The MSCI U.S. REIT Index is a widely used index comprising a broad
representation of the most actively traded real estate trusts, and is designed
to be a measure of real estate equity performance. Index returns assume
reinvestment of dividends and, unlike Fund returns, do not reflect any fees,
expenses or sales charges. You cannot invest directly in an Index.
Pioneer Real Estate Shares | Semiannual Report | 6/30/09 13
Comparing Ongoing Fund Expenses
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
- --------------------------------------------------------------------------------
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
(1) Divide your account value by $1,000
Example: an $8,600 account value [divided by] $1,000 = 8.6
(2) Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Real Estate Shares
Based on actual returns from January 1, 2009 through June 30, 2009.
- --------------------------------------------------------------------------------------
Share Class A B C Y
- --------------------------------------------------------------------------------------
Beginning Account $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00
Value on 1/1/09
- --------------------------------------------------------------------------------------
Ending Account $ 902.70 $ 895.90 $ 897.80 $ 907.70
Value on 6/30/09
- --------------------------------------------------------------------------------------
Expenses Paid $ 9.29 $ 16.83 $ 14.45 $ 5.11
During Period*
- --------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.97%, 3.58%,
3.07% and 1.08% for Class A, Class B, Class C and Class Y shares,
respectively, multiplied by the average account value over the period,
multiplied by 181/365 (to reflect the one-half year period).
14 Pioneer Real Estate Shares | Semiannual Report | 6/30/09
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to
estimate the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the
5% hypothetical examples that appear in the shareholder reports of the other
funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer Real Estate Shares
Based on a hypothetical 5% return per year before expenses, reflecting the
period from January 1, 2009 through June 30, 2009.
- --------------------------------------------------------------------------------------
Share Class A B C Y
- --------------------------------------------------------------------------------------
Beginning Account $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00
Value on 1/1/09
- --------------------------------------------------------------------------------------
Ending Account $ 1,015.03 $ 1,007.04 $ 1,009.57 $ 1,019.44
Value on 6/30/09
- --------------------------------------------------------------------------------------
Expenses Paid $ 9.84 $ 17.82 $ 15.30 $ 5.41
During Period*
- --------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.97%, 3.58%,
3.07% and 1.08% for Class A, Class B, Class C and Class Y shares,
respectively, multiplied by the average account value over the period,
multiplied by 181/365 (to reflect the one-half year period).
Pioneer Real Estate Shares | Semiannual Report | 6/30/09 15
Schedule of Investments | 6/30/09 (unaudited)
- ---------------------------------------------------------------------------------
Shares Value
- ---------------------------------------------------------------------------------
COMMON STOCKS -- 94.8%
CONSUMER SERVICES -- 1.2%
Hotels, Resorts & Cruise Lines -- 1.2%
50,200 Starwood Hotels & Resorts Worldwide, Inc. (b) $ 1,114,440
------------
Total Consumer Services $ 1,114,440
- ---------------------------------------------------------------------------------
REAL ESTATE -- 93.6%
Diversified Real Estate Investment Trusts -- 8.7%
161,900 Liberty Property Trust $ 3,730,176
90,968 Vornado Realty Trust (b) 4,096,289
------------
$ 7,826,465
- ---------------------------------------------------------------------------------
Industrial Real Estate Investment Trusts -- 7.0%
109,300 AMB Property Corp. (b) $ 2,055,933
505,900 DCT Industrial Trust, Inc. 2,064,072
126,400 DuPont Fabros Technology, Inc. 1,190,688
101,400 First Potomac Realty Trust 988,650
------------
$ 6,299,343
- ---------------------------------------------------------------------------------
Office Real Estate Investment Trusts -- 13.1%
147,900 BioMed Property Trust, Inc. $ 1,513,017
89,800 Boston Properties, Inc. 4,283,460
85,100 Brandywine Realty Trust 633,995
50,200 Digital Realty Trust, Inc. (b) 1,799,670
198,300 HRPT Properties Trust 805,098
109,800 Kilroy Realty Corp. 2,255,292
22,300 Mack-Cali Realty Corp.* 508,440
------------
$ 11,798,972
- ---------------------------------------------------------------------------------
Residential Real Estate Investment Trusts -- 15.9%
77,001 AvalonBay Communities, Inc.*(b) $ 4,307,436
116,700 Camden Property Trust* 3,220,920
5,300 Equity Lifestyle Properties, Inc.* 197,054
212,000 Equity Residential Property Trust 4,712,760
30,000 Essex Property Trust, Inc. (b) 1,866,900
------------
$ 14,305,070
- ---------------------------------------------------------------------------------
Retail Real Estate Investment Trusts -- 25.0%
60,900 Federal Realty Investment Trust (b) $ 3,137,568
146,900 Kimco Realty Corp. (b) 1,476,345
318,500 Kite Realty Group Trust 930,020
73,900 National Retail Properties, Inc. (b) 1,282,165
34,900 Realty Income Corp. (b) 765,008
95,000 Regency Centers Corp. (b) 3,316,450
151,871 Simon Property Group, Inc. (b) 7,810,726
18,000 Taubman Centers, Inc. (b) 483,480
189,922 The Macerich Co. (b) 3,344,526
------------
$ 22,546,288
- ---------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
16 Pioneer Real Estate Shares | Semiannual Report | 6/30/09
- ---------------------------------------------------------------------------------
Shares Value
- ---------------------------------------------------------------------------------
Specialized Real Estate Investment Trusts -- 23.9%
37,300 Entertainment Properties Trust (b) $ 768,380
292,000 Extra Space Storage, Inc. 2,438,200
151,200 HCP, Inc. 3,203,928
396,700 Host Hotels & Resorts, Inc. (b) 3,328,313
145,000 Nationwide Health Properties, Inc. (b) 3,732,300
205,600 Omega Healthcare Investors, Inc. 3,190,912
68,000 Public Storage, Inc. 4,452,640
15,300 Ventas, Inc.* 456,858
------------
$ 21,571,531
------------
Total Real Estate $ 84,347,669
- ---------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $97,397,084) $ 85,462,109
- ---------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal
Amount
- --------------------------------------------------------------------------------
TEMPORARY CASH INVESTMENTS -- 18.3%
Securities Lending Collateral -- 18.3% (c)
Certificates of Deposit:
$ 369,059 Abbey National Plc, 1.27%, 8/13/09 $ 369,059
553,588 Royal Bank of Canada NY, 1.19%, 8/7/09 553,588
664,306 Svenska Bank NY, 1.48%, 7/8/09 664,306
737,363 Cafco, 0.40%, 10/1/09 737,363
516,281 Ciesco, 0.40%, 9/1/09 516,281
553,554 Fasco, 0.25%, 7/10/09 553,554
737,445 Kithaw, 0.40%, 9/21/09 737,445
737,935 Merrill Lynch, 0.61%, 8/14/09 737,935
738,118 CBA, 1.35%, 7/16/09 738,118
738,118 Societe Generale, 1.06%, 9/4/09 738,118
738,118 U.S. Bank NA, 0.76%, 8/24/09 738,118
------------
$ 7,083,885
- --------------------------------------------------------------------------------
Commercial Paper:
738,118 Monumental Global Funding, Ltd., 1.28%, 8/17/09 738,118
369,059 CME Group, Inc., 1.21%, 8/6/09 369,059
553,793 GE, 0.47%, 9/18/09 553,794
148,985 GE, 0.79%, 10/26/09 148,985
724,832 American Honda Finance Corp., 1.27%, 7/14/09 724,832
738,118 HSBC Bank, Inc., 1.31%, 8/14/09 738,118
184,529 IBM, 0.88%, 9/25/09 184,529
664,306 New York Life Global, 0.75%, 9/4/09 664,306
------------
$ 4,121,741
- --------------------------------------------------------------------------------
Tri-party Repurchase Agreements:
2,066,730 Deutsche Bank, 0.08%, 7/1/09 $ 2,066,730
2,460,833 Barclays Capital Markets, 0.01%, 7/1/09 2,460,833
------------
$ 4,527,563
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Real Estate Shares | Semiannual Report | 6/30/09 17
Schedule of Investments | 6/30/09 (unaudited) (continued)
- --------------------------------------------------------------------------
Shares Value
- --------------------------------------------------------------------------
Money Market Mutual Fund:
738,118 JPMorgan U.S. Government Money Market Fund $ 738,118
------------
Total Securities Lending Collateral $ 16,471,307
- --------------------------------------------------------------------------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $16,471,307) $ 16,471,307
- --------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 113.1%
(Cost $113,868,391) (a) $101,933,416
- --------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- (13.1)% $(11,762,498)
- --------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $ 90,170,918
==========================================================================
* Non-income producing security.
(a) At June 30, 2009, the net unrealized loss on investments based on cost
for federal income tax purposes of $117,820,270 was as follows:
Aggregate gross unrealized gain for all investments in which there is an
excess of value over tax cost $ 9,442,315
Aggregate gross unrealized loss for all investments in which there is an
excess of tax cost over value (25,329,169)
-------------
Net unrealized loss $(15,886,854)
=============
(b) At June 30, 2009, the following securities were out on loan:
- ---------------------------------------------------------------------
Shares Description Value
- ---------------------------------------------------------------------
2,000 AMB Property Corp. $ 37,620
63,600 AvalonBay Communities, Inc.* 3,557,784
49,600 Digital Realty Trust, Inc. 1,778,160
3,900 Entertainment Properties Trust 80,340
12,500 Essex Property Trust, Inc. 777,875
46,400 Federal Realty Investment Trust 2,390,528
65,000 Host Hotels & Resorts, Inc. 545,350
1,200 Kimco Realty Corp. 12,060
13,000 National Retail Properties, Inc. 225,550
31,600 Nationwide Health Properties, Inc. 813,384
34,500 Realty Income Corp. 756,240
11,700 Regency Centers Corp. 408,447
8,900 Simon Property Group 457,727
50,200 Starwood Hotels & Resorts Worldwide, Inc. 1,114,440
100 Taubman Centers, Inc. 2,686
187,274 The Macerich Co. 3,297,895
100 Vornado Realty Trust 4,503
- ---------------------------------------------------------------------
Total $16,260,589
=====================================================================
The accompanying notes are an integral part of these financial statements.
18 Pioneer Real Estate Shares | Semiannual Report | 6/30/09
(c) Security lending collateral is managed by Credit Suisse, New York Branch.
Purchases and sales of securities (excluding temporary cash investments) for
the six months ended June 30, 2009 aggregated $16,411,820 and $12,856,260,
respectively.
Various inputs are used in determining the value of the Fund's investments.
These inputs are summarized in the three broad levels listed below.
Highest priority is given to Level 1 inputs and lowest priority is given to
Level 3.
Level 1 -- quoted prices in active markets for identical securities
Level 2 -- other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit risk,
etc.)
Level 3 -- significant unobservable inputs (including the Fund's own
assumptions in determining fair value of investments)
The following is a summary of the inputs used as of June 30, 2009, in valuing
the Fund's assets:
- ------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
- ------------------------------------------------------------------------------------------
Common Stocks $85,462,109 $ -- $-- $ 85,462,109
Temporary Cash Investments 738,118 15,733,189 -- 16,471,307
- ------------------------------------------------------------------------------------------
Total $86,200,227 $15,733,189 $-- $101,933,416
==========================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Real Estate Shares | Semiannual Report | 6/30/09 19
Statement of Assets and Liabilities | 6/30/09 (unaudited)
ASSETS:
Investment in securities, at value (including securities loaned
of $16,260,589) (cost $113,868,391) $101,933,416
Cash 2,682,274
Receivables --
Investment securities sold 115,339
Fund shares sold 1,563,415
Dividends 509,239
Other 34,290
- ---------------------------------------------------------------------------------
Total assets $106,837,973
- ---------------------------------------------------------------------------------
LIABILITIES:
Payables --
Investment securities purchased $ 35,946
Fund shares repurchased 77,242
Upon return of securities loaned 16,471,307
Due to affiliates 42,731
Accrued expenses 39,829
- ---------------------------------------------------------------------------------
Total liabilities $ 16,667,055
- ---------------------------------------------------------------------------------
NET ASSETS:
Paid-in capital $133,413,832
Undistributed net investment income 74,270
Accumulated net realized loss on investments (31,382,209)
Net unrealized loss on investments (11,934,975)
- ---------------------------------------------------------------------------------
Total net assets $ 90,170,918
- ---------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $49,798,110/4,360,508 shares) $ 11.42
Class B (based on $6,618,465/586,794 shares) $ 11.28
Class C (based on $6,438,476/569,624 shares) $ 11.30
Class Y (based on $27,315,867/2,393,997 shares) $ 11.41
MAXIMUM OFFERING PRICE:
Class A ($11.42 [divided by] 94.25%) $ 12.12
=================================================================================
The accompanying notes are an integral part of these financial statements.
20 Pioneer Real Estate Shares | Semiannual Report | 6/30/09
Statement of Operations (unaudited)
For the Six Months Ended 6/30/09
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $4,761) 2,810,321
Interest 1,361
Income from securities loaned, net 105,340
- --------------------------------------------------------------------------------------
Total investment income $ 2,917,022
- --------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 322,560
Transfer agent fees
Class A 115,702
Class B 36,473
Class C 22,945
Class Y 254
Distribution fees
Class A 56,711
Class B 32,118
Class C 29,956
Shareholder communications expense 54,091
Administrative reimbursements 13,063
Custodian fees 5,154
Registration fees 22,375
Professional fees 26,001
Printing expense 27,754
Fees and expenses of nonaffiliated trustees 4,010
Miscellaneous 9,509
- --------------------------------------------------------------------------------------
Total expenses $ 778,676
Less fees paid indirectly (51)
- --------------------------------------------------------------------------------------
Net expenses $ 778,625
- --------------------------------------------------------------------------------------
Net investment income $ 2,138,397
- --------------------------------------------------------------------------------------
REALIZED AND UNREALIZED LOSS ON INVESTMENTS:
Net realized loss on investments $(20,370,131)
- --------------------------------------------------------------------------------------
Change in net unrealized loss on investments $ 8,518,956
- --------------------------------------------------------------------------------------
Net loss on investments $(11,851,175)
- --------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $ (9,712,778)
======================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Real Estate Shares | Semiannual Report | 6/30/09 21
Statement of Changes in Net Assets
For the Six Months Ended 6/30/09 and the Year Ended 12/31/08, respectively
- ------------------------------------------------------------------------------------------------
Six Months
Ended
6/30/09 Year Ended
(unaudited) 12/31/08
- ------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 2,138,397 $ 3,106,813
Net realized loss on investments (20,370,131) (9,879,430)
Change in net unrealized gain (loss) on investments 8,518,956 (55,661,050)
- ------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $(9,712,778) $(62,433,667)
- ------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.27 and $0.46 per share, respectively) $(1,129,729) $ (1,997,135)
Class B ($0.19 and $0.24 per share, respectively) (114,082) (171,449)
Class C ($0.21 and $0.29 per share, respectively) (117,658) (179,329)
Class Y ($0.32 and $0.58 per share, respectively) (702,658) (1,079,004)
Tax return of capital:
Class A ($0.00 and $0.29 per share, respectively) -- (1,249,707)
Class B ($0.00 and $0.29 per share, respectively) -- (206,544)
Class C ($0.00 and $0.29 per share, respectively) -- (178,055)
Class Y ($0.00 and $0.29 per share, respectively) -- (536,147)
- ------------------------------------------------------------------------------------------------
Total distributions to shareowners $(2,064,127) $ (5,597,370)
- ------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $12,003,473 $ 39,347,126
Reinvestment of distributions 1,476,447 4,971,103
Cost of shares repurchased (9,165,353) (54,576,418)
- ------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from Fund
share transactions $ 4,314,567 $(10,258,189)
- ------------------------------------------------------------------------------------------------
Net decrease in net assets $(7,462,338) $(78,289,226)
NET ASSETS:
Beginning of period 97,633,256 175,922,482
- ------------------------------------------------------------------------------------------------
End of period $90,170,918 $ 97,633,256
- ------------------------------------------------------------------------------------------------
Undistributed net investment income $ 74,270 $ --
================================================================================================
The accompanying notes are an integral part of these financial statements.
22 Pioneer Real Estate Shares | Semiannual Report | 6/30/09
- -------------------------------------------------------------------------------------------------
'09 Shares '09 Amount '08 Shares '08 Amount
(unaudited) (unaudited)
- -------------------------------------------------------------------------------------------------
Class A
Shares sold 646,105 $6,786,961 1,308,307 $27,208,478
Reinvestment of distributions 91,113 897,840 149,644 2,795,752
Less shares repurchased (635,005) (6,263,958) (1,652,413) (31,691,972)
- -------------------------------------------------------------------------------------------------
Net increase (decrease) 102,213 $1,420,843 (194,462) $(1,687,742)
==================================================================================================
Class B
Shares sold 47,584 $ 500,159 171,590 $ 3,400,601
Reinvestment of distributions 11,180 107,758 19,100 350,488
Less shares repurchased (128,447) (1,331,254) (381,164) (7,322,566)
- -------------------------------------------------------------------------------------------------
Net decrease (69,683) $ (723,337) (190,474) $(3,571,477)
==================================================================================================
Class C
Shares sold 58,336 $ 613,238 144,485 $ 2,878,143
Reinvestment of distributions 10,216 99,171 16,748 304,205
Less shares repurchased (91,308) (935,623) (265,784) (5,214,556)
- -------------------------------------------------------------------------------------------------
Net decrease (22,756) $ (223,214) (104,551) $(2,032,208)
==================================================================================================
Class Y
Shares sold 393,415 $4,103,115 394,808 $ 5,859,904
Reinvestment of distributions 40,924 371,678 83,015 1,520,658
Less shares repurchased (61,013) (634,518) (499,132) (10,347,324)
- -------------------------------------------------------------------------------------------------
Net increase (decrease) 373,326 $3,840,275 (21,309) $(2,966,762)
==================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Real Estate Shares | Semiannual Report | 6/30/09 23
Financial Highlights
- ---------------------------------------------------------------------------------------------------------------
Six Months
Ended Year
6/30/09 Ended
(unaudited) 12/31/08
- ---------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 13.00 $ 21.94
- ---------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.28 $ 0.43
Net realized and unrealized gain (loss) on investments (1.59) (8.62)
- ---------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (1.31) $ (8.19)
Distributions to shareowners:
Net investment income (0.27) (0.46)
Net realized gain -- --
Tax return of capital -- (0.29)
- ---------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (1.58) $ (8.94)
- ---------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 11.42 $ 13.00
- ---------------------------------------------------------------------------------------------------------------
Total return* (9.73)% (38.31)%
Ratio of net expenses to average net assets+ 1.97%** 1.63%
Ratio of net investment income to average net assets+ 5.24%** 2.10%
Portfolio turnover rate 32%** 18%
Net assets, end of period (in thousands) $49,798 $ 55,353
Ratios with no waiver of management fees by PIM and no reduction for fees
paid indirectly:
Net expenses 1.97%** 1.63%
Net investment income 5.24%** 2.10%
Ratios with waiver of management fees by PIM and reduction for fees paid indirectly:
Net expenses 1.97%** 1.63%
Net investment income 5.24%** 2.10%
================================================================================================================
- -------------------------------------------------------------------------------------------------------------------------
Year Year Year
Ended Ended Ended
12/31/07 12/31/06 12/31/05
- -------------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 33.07 $ 25.87 $ 24.52
- -------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.36 $ 0.28 $ 0.28
Net realized and unrealized gain (loss) on investments (6.76) 8.88 3.29
- -------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (6.40) $ 9.16 $ 3.57
Distributions to shareowners:
Net investment income (0.36) (0.28) (0.24)
Net realized gain (4.37) (1.68) (1.84)
Tax return of capital -- -- (0.14)
- -------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (11.13) $ 7.20 $ 1.35
- -------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 21.94 $ 33.07 $ 25.87
- -------------------------------------------------------------------------------------------------------------------------
Total return* (19.39)% 35.79% 14.79%
Ratio of net expenses to average net assets+ 1.36% 1.37% 1.50%
Ratio of net investment income to average net assets+ 1.10% 0.98% 1.14%
Portfolio turnover rate 21% 20% 24%
Net assets, end of period (in thousands) $ 97,691 $163,088 $110,217
Ratios with no waiver of management fees by PIM and no reduction for fees
paid indirectly:
Net expenses 1.36% 1.37% 1.50%
Net investment income 1.10% 0.98% 1.14%
Ratios with waiver of management fees by PIM and reduction for fees paid indirectly:
Net expenses 1.35% 1.36% 1.50%
Net investment income 1.11% 0.99% 1.14%
===========================================================================================================================
- ---------------------------------------------------------------------------------------------------
Year
Ended
12/31/04 (a)
- ---------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 19.55
- ---------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.39
Net realized and unrealized gain (loss) on investments 6.31
- ---------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 6.70
Distributions to shareowners:
Net investment income (0.40)
Net realized gain (1.33)
Tax return of capital --
- ---------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 4.97
- ---------------------------------------------------------------------------------------------------
Net asset value, end of period $ 24.52
- ---------------------------------------------------------------------------------------------------
Total return* 35.26%
Ratio of net expenses to average net assets+ 1.56%
Ratio of net investment income to average net assets+ 1.85%
Portfolio turnover rate 34%
Net assets, end of period (in thousands) $94,198
Ratios with no waiver of management fees by PIM and no reduction for fees
paid indirectly:
Net expenses 1.56%
Net investment income 1.85%
Ratios with waiver of management fees by PIM and reduction for fees paid indirectly:
Net expenses 1.56%
Net investment income 1.85%
===================================================================================================
(a) Effective May 31, 2004 AEW Capital Management, L.P. became sub-adviser to
the Fund.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratio with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
24 Pioneer Real Estate Shares | Semiannual Report | 6/30/09
- --------------------------------------------------------------------------------------------------------------
Six Months
Ended Year
6/30/09 Ended
(unaudited) 12/31/08
- --------------------------------------------------------------------------------------------------------------
Class B
Net asset value, beginning of period $ 12.84 $ 21.68
- --------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.19 $ 0.19
Net realized and unrealized gain (loss) on investments (1.56) (8.50)
- --------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (1.37) $ (8.31)
Distributions to shareowners:
Net investment income (0.19) (0.24)
Net realized gain -- --
Tax return of capital -- (0.29)
- --------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (1.56) $ (8.84)
- --------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 11.28 $ 12.84
- --------------------------------------------------------------------------------------------------------------
Total return* (10.41)% (31.01)%
Ratio of net expenses to average net assets+ 3.58%** 2.72%
Ratio of net investment income to average net assets+ 3.64%** 0.89%
Portfolio turnover rate 32%** 18%
Net assets, end of period (in thousands) $ 6,618 $ 8,428
Ratios with no waiver of management fees by PIM and no reduction for fees
paid indirectly:
Net expenses 3.58%** 2.72%
Net investment income 3.64%** 0.89%
Ratios with waiver of management fees by PIM and reduction for fees paid indirectly:
Net expenses 3.58%** 2.71%
Net investment income 3.64%** 0.90%
==============================================================================================================
- -------------------------------------------------------------------------------------------------------------------------
Year Year Year
Ended Ended Ended
12/31/07 12/31/06 12/31/05
- -------------------------------------------------------------------------------------------------------------------------
Class B
Net asset value, beginning of period $ 32.74 $ 25.64 $ 24.32
- -------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.06 $ 0.01 $ 0.06
Net realized and unrealized gain (loss) on investments (6.68) 8.78 3.24
- -------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (6.61) $ 8.79 $ 3.30
Distributions to shareowners:
Net investment income (0.07) (0.01) (0.05)
Net realized gain (4.37) (1.68) (1.84)
Tax return of capital -- -- (0.09)
- -------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $(11.06) $ 7.10 $ 1.32
- -------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 21.68 $ 32.74 $ 25.64
- -------------------------------------------------------------------------------------------------------------------------
Total return* (20.14)% 34.51% 13.72%
Ratio of net expenses to average net assets+ 2.28% 2.31% 2.42%
Ratio of net investment income to average net assets+ 0.11% 0.00%(b) 0.14%
Portfolio turnover rate 21% 20% 24%
Net assets, end of period (in thousands) $18,364 $35,442 $29,992
Ratios with no waiver of management fees by PIM and no reduction for fees
paid indirectly:
Net expenses 2.28% 2.31% 2.42%
Net investment income 0.11% 0.00%(b) 0.14%
Ratios with waiver of management fees by PIM and reduction for fees paid indirectly:
Net expenses 2.26% 2.30% 2.42%
Net investment income 0.13% 0.01% 0.14%
=========================================================================================================================
- --------------------------------------------------------------------------------------------------
Year
Ended
12/31/04 (a)
- --------------------------------------------------------------------------------------------------
Class B
Net asset value, beginning of period $ 19.40
- --------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.19
Net realized and unrealized gain (loss) on investments 6.28
- --------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 6.47
Distributions to shareowners:
Net investment income (0.22)
Net realized gain (1.33)
Tax return of capital --
- --------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 4.92
- --------------------------------------------------------------------------------------------------
Net asset value, end of period $ 24.32
- --------------------------------------------------------------------------------------------------
Total return* 34.20%
Ratio of net expenses to average net assets+ 2.37%
Ratio of net investment income to average net assets+ 0.96%
Portfolio turnover rate 34%
Net assets, end of period (in thousands) $39,833
Ratios with no waiver of management fees by PIM and no reduction for fees
paid indirectly:
Net expenses 2.37%
Net investment income 0.96%
Ratios with waiver of management fees by PIM and reduction for fees paid indirectly:
Net expenses 2.37%
Net investment income 0.96%
==================================================================================================
(a) Effective May 31, 2004 AEW Capital Management, L.P. became sub-adviser to
the Fund.
(b) Amount rounds to less than 0.01% per share.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratio with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
Pioneer Real Estate Shares | Semiannual Report | 6/30/09 25
Financial Highlights (continued)
- --------------------------------------------------------------------------------------------------------------
Six Months
Ended Year
6/30/09 Ended
(unaudited) 12/31/08
- --------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 12.86 $ 21.72
- --------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.22 $ 0.25
Net realized and unrealized gain (loss) on investments (1.57) (8.53)
- --------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (1.35) $ (8.28)
Distributions to shareowners:
Net investment income (0.21) (0.29)
Net realized gain -- --
Tax return of capital -- (0.29)
- --------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (1.56) $ (8.86)
- --------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 11.30 $ 12.86
- --------------------------------------------------------------------------------------------------------------
Total return* (10.22)% (38.85)%
Ratio of net expenses to average net assets+ 3.07%** 2.50%
Ratio of net investment income to average net assets+ 4.14%** 1.18%
Portfolio turnover rate 32%** 18%
Net assets, end of period (in thousands) $ 6,438 $ 7,619
Ratios with no waiver of management fees by PIM and no reduction for fees
paid indirectly:
Net expenses 3.07%** 2.50%
Net investment income 4.14%** 1.18%
Ratios with waiver of management fees by PIM and reduction for fees paid indirectly:
Net expenses 3.07%** 2.49%
Net investment income 4.14%** 1.19%
==============================================================================================================
- ------------------------------------------------------------------------------------------------------------------------
Year Year Year
Ended Ended Ended
12/31/07 12/31/06 12/31/05
- ------------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 32.80 $ 25.68 $ 24.35
- ------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.10 $ 0.02 $ 0.08
Net realized and unrealized gain (loss) on investments (6.70) 8.80 3.26
- ------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (6.60) $ 8.82 $ 3.34
Distributions to shareowners:
Net investment income (0.11) (0.02) (0.07)
Net realized gain (4.37) (1.68) (1.84)
Tax return of capital -- -- (0.10)
- ------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $(11.08) $ 7.12 $ 1.33
- ------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 21.72 $ 32.80 $ 25.68
- ------------------------------------------------------------------------------------------------------------------------
Total return* (20.07)% 34.60% 13.85%
Ratio of net expenses to average net assets+ 2.17% 2.24% 2.32%
Ratio of net investment income to average net assets+ 0.26% 0.10% 0.27%
Portfolio turnover rate 21% 20% 24%
Net assets, end of period (in thousands) $15,139 $27,209 $19,824
Ratios with no waiver of management fees by PIM and no reduction for fees
paid indirectly:
Net expenses 2.17% 2.24% 2.32%
Net investment income 0.26% 0.10% 0.27%
Ratios with waiver of management fees by PIM and reduction for fees paid indirectly:
Net expenses 2.16% 2.23% 2.32%
Net investment income 0.27% 0.11% 0.27%
=========================================================================================================================
- -----------------------------------------------------------------------------------------------------
Year
Ended
12/31/04 (a)
- -----------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 19.42
- -----------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.20
Net realized and unrealized gain (loss) on investments 6.29
- -----------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 6.49
Distributions to shareowners:
Net investment income (0.23)
Net realized gain (1.33)
Tax return of capital --
- -----------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 4.93
- -----------------------------------------------------------------------------------------------------
Net asset value, end of period $ 24.35
- -----------------------------------------------------------------------------------------------------
Total return* 34.27%
Ratio of net expenses to average net assets+ 2.34%
Ratio of net investment income to average net assets+ 1.02%
Portfolio turnover rate 34%
Net assets, end of period (in thousands) $20,675
Ratios with no waiver of management fees by PIM and no reduction for fees
paid indirectly:
Net expenses 2.34%
Net investment income 1.02%
Ratios with waiver of management fees by PIM and reduction for fees paid indirectly:
Net expenses 2.34%
Net investment income 1.02%
=====================================================================================================
(a) Effective May 31, 2004 AEW Capital Management, L.P. became sub-adviser to
the Fund.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratio with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
26 Pioneer Real Estate Shares | Semiannual Report | 6/30/09
- ------------------------------------------------------------------------------------------------------------
Six Months
Ended Year
6/30/09 Ended
(unaudited) 12/31/08
- ------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 12.98 $ 21.90
- ------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.32 $ 0.54
Net realized and unrealized gain (loss) on investments (1.57) (8.59)
- ------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (1.25) $ (8.05)
Distributions to shareowners:
Net investment income (0.32) (0.58)
Net realized gain -- --
Tax return of capital -- (0.29)
- ------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (1.57) $ (8.92)
- ------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 11.41 $ 12.98
- ------------------------------------------------------------------------------------------------------------
Total return* (9.23)% (37.90)%
Ratio of net expenses to average net assets+ 1.08%** 1.02%
Ratio of net investment income to average net assets+ 6.19%** 2.76%
Portfolio turnover rate 32%** 18%
Net assets, end of period (in thousands) $27,316 $26,233
Ratios with no waiver of management fees by PIM and no reduction for fees
paid indirectly:
Net expenses 1.08%** 1.02%
Net investment income 6.19%** 2.76%
Ratios with waiver of management fees by PIM and reduction for fees paid indirectly:
Net expenses 1.08%** 1.02%
Net investment income 6.19%** 2.76%
============================================================================================================
- ------------------------------------------------------------------------------------------------------------------------
Year Year Year
Ended Ended Ended
12/31/07 12/31/06 12/31/05
- ------------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 33.03 $ 25.84 $ 24.49
- ------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.49 $ 0.42 $ 0.35
Net realized and unrealized gain (loss) on investments (6.75) 8.87 3.34
- ------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (6.26) $ 9.29 $ 3.69
Distributions to shareowners:
Net investment income (0.50) (0.42) (0.34)
Net realized gain (4.37) (1.68) (1.84)
Tax return of capital -- -- (0.16)
- ------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $(11.13) $ 7.19 $ 1.35
- ------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 21.90 $ 33.03 $ 25.84
- ------------------------------------------------------------------------------------------------------------------------
Total return* (19.03)% 36.43% 15.36%
Ratio of net expenses to average net assets+ 0.90% 0.87% 1.00%
Ratio of net investment income to average net assets+ 1.81% 1.54% 1.84%
Portfolio turnover rate 21% 20% 24%
Net assets, end of period (in thousands) $44,729 $46,436 $26,490
Ratios with no waiver of management fees by PIM and no reduction for fees
paid indirectly:
Net expenses 0.90% 0.87% 1.00%
Net investment income 1.81% 1.54% 1.84%
Ratios with waiver of management fees by PIM and reduction for fees paid indirectly:
Net expenses 0.90% 0.87% 1.00%
Net investment income 1.81% 1.54% 1.84%
=========================================================================================================================
- --------------------------------------------------------------------------------------------------
Year
Ended
12/31/04 (a)
- --------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 19.53
- --------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.50
Net realized and unrealized gain (loss) on investments 6.31
- --------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 6.81
Distributions to shareowners:
Net investment income (0.52)
Net realized gain (1.33)
Tax return of capital --
- --------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 4.96
- --------------------------------------------------------------------------------------------------
Net asset value, end of period $ 24.49
- --------------------------------------------------------------------------------------------------
Total return* 35.97%
Ratio of net expenses to average net assets+ 1.01%
Ratio of net investment income to average net assets+ 2.47%
Portfolio turnover rate 34%
Net assets, end of period (in thousands) $ 9,172
Ratios with no waiver of management fees by PIM and no reduction for fees
paid indirectly:
Net expenses 1.01%
Net investment income 2.47%
Ratios with waiver of management fees by PIM and reduction for fees paid indirectly:
Net expenses 1.01%
Net investment income 2.47%
==================================================================================================
(a) Effective May 31, 2004 AEW Capital Management, L.P. became sub-adviser to
the Fund.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, and the complete redemption of
the investment at net asset value at each end of each period.
** Annualized.
+ Ratio with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
Pioneer Real Estate Shares | Semiannual Report | 6/30/09 27
Notes to Financial Statements | 6/30/09 (unaudited)
1. Organization and Significant Accounting Policies
Pioneer Real Estate Shares (the Fund) is a Delaware statutory trust registered
under the Investment Company Act of 1940 as a diversified, open-end management
investment company. The investment objective of the Fund is to seek long-term
growth of capital. Current income is a secondary objective.
The Fund offers four classes of shares - Class A, Class B, Class C, and Class Y
shares. Each class of shares represents an interest in the same portfolio of
investments of the Fund and has identical rights (based on relative net asset
values) to assets and liquidation proceeds. Share classes can bear different
class-specific fees and expenses such as transfer agent and distribution fees.
Differences in class-specific fees and expenses will result in differences in
net investment income and, therefore, the payment of different dividends by
each class. The Amended and Restated Declaration of Trust of the Fund gives the
Board the flexibility to specify either per share voting or dollar-weighted
voting when submitting matters for shareholder approval. Under per share
voting, each share of a class of the Fund is entitled to one vote. Under
dollar-weighted voting, a shareholder's voting power is determined not by the
number of shares owned, but by the dollar value of the shares on the record
date. Share classes have exclusive voting rights with respect to matters
affecting only that class, including with respect to the distribution plan for
that class. There is no distribution plan for Class Y shares. Class B shares
convert to Class A shares approximately eight years after the date of purchase.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the
Fund to, among other things, make estimates and assumptions that affect the
reported amounts of assets and liabilities, the disclosure of contingent assets
and liabilities at the date of the financial statements, and the reported
amounts of income, expenses and gains and losses on investments during the
reporting period. Actual results could differ from those estimates.
Because the Fund may invest a substantial portion of its assets in Real Estate
Investment Trusts (REITs), the Fund may be subject to certain risks associated
with direct investments in REITs. REITs may be affected by changes in the value
of their underlying properties and by defaults of their borrowers or tenants.
REITs depend generally on their ability to generate cash flow to make
distributions to shareowners, and certain REITs have self-liquidation
provisions by which mortgages held may be paid in full and distributions of
capital returns may be made at any time. In addition, the performance of a REIT
may be affected by its failure to qualify for tax-free pass through of income
under
28 Pioneer Real Estate Shares | Semiannual Report | 6/30/09
the Internal Revenue Code or its failure to maintain exemption from
registration under the Investment Company Act of 1940. The Fund's prospectuses
contain unaudited information regarding the Fund's principal risks. Please
refer to those documents when considering the Fund's risks.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements, which are consistent with
those policies generally accepted in the investment company industry.
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value of
the Fund is computed once daily, on each day the New York Stock Exchange
(NYSE) is open, as of the close of regular trading on the NYSE. In computing
the net asset value, securities are valued at the last sale price on the
principal exchange where they are traded. Securities that have not traded on
the date of valuation, or securities for which sale prices are not generally
reported, are valued at the mean between the last bid and asked prices.
Securities for which market prices and/or quotations are not readily
available are valued using fair value methods pursuant to procedures adopted
by the Board of Trustees. Trading in foreign securities is substantially
completed each day at various times prior to the close of the NYSE. The
values of such securities used in computing the net asset value of the Fund's
shares are determined as of such times. The Fund may also use fair value
methods to value a security, including a non-U.S. security, when the closing
market price on the principal exchange where the security is traded no longer
reflects the value of the security. At June 30, 2009, there were no
securities that were valued using fair value methods (other than securities
valued using prices supplied by independent pricing services). Temporary cash
investments are valued at cost which approximates market value.
Dividend income is recorded on the ex-dividend date, except that certain
dividends from foreign securities where the ex-dividend date may have passed
are recorded as soon as the Fund becomes aware of the ex-dividend data in the
exercise of reasonable diligence. Interest income is recorded on the accrual
basis.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
B. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no federal income tax provision is required. Tax
years for the prior three fiscal years remain subject to examination by tax
authorities.
Pioneer Real Estate Shares | Semiannual Report | 6/30/09 29
The amounts and characterizations of distributions to shareowners for
financial reporting purposes are determined in accordance with federal income
tax rules. Therefore, the sources of the Fund's distributions may be shown in
the accompanying financial statements as from or in excess of net investment
income or net realized gain on investment transactions, or as from paid-in
capital, depending on the type of book/tax differences that may exist. A
portion of the dividend income recorded by the Fund is from distributions by
publicly traded REITs, and such distributions for tax purposes may also
consist of capital gains and return of capital. The actual return of capital
and capital gains portions of such distributions will be determined by formal
notifications from the REITs subsequent to the calendar year-end.
Distributions received from the REITs that are determined to be a return of
capital are recorded by the Fund as a reduction of the cost basis of the
securities held.
At December 31, 2008, the Fund had a net capital loss carryforward of
$7,060,199, which will expire in 2016 if not utilized.
The tax character of current year distributions paid will be determined at
the end of the current taxable year. The tax character of distributions paid
during the year ended December 31, 2008, was as follows:
- -----------------------------------------------
2008
- -----------------------------------------------
Distributions paid from:
Ordinary income $3,426,917
Long-term capital gain --
Return of capital 2,170,453
- -----------------------------------------------
Total $5,597,370
===============================================
The following shows the components of distributable earnings on a federal
income tax basis at December 31, 2008:
- -----------------------------------------------
2008
- -----------------------------------------------
Distributable earnings:
Capital loss carryforward $ (7,060,199)
Unrealized depreciation (24,405,810)
- -----------------------------------------------
Total $(31,466,009)
===============================================
The difference between book basis and tax-basis unrealized depreciation is
attributable to the tax deferral of losses on wash sales.
C. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the Fund
and a wholly owned indirect subsidiary of UniCredit S.p.A.
30 Pioneer Real Estate Shares | Semiannual Report | 6/30/09
(UniCredit), earned $5,375 in underwriting commissions on the sale of Class A
shares during the six months ended June 30, 2009.
D. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on their respective percentage of adjusted net assets at the beginning
of the day. Distribution fees are calculated based on the average daily net
asset value attributable to Class A, Class B and Class C shares of the Fund,
respectively. Class Y shares are not subject to a distribution plan (see Note
4). Shareowners of each class participate in all expenses and fees paid to
the transfer agent, Pioneer Investment Management Shareholder Services, Inc.
(PIMSS), for its services, which are allocated based on the number of
accounts in each class and the ratable allocation of related out-of-pocket
expenses (see Note 3).
Distributions to shareowners are recorded as of the ex-dividend date.
Distributions paid by the Fund with respect to each class of shares are
calculated in the same manner and at the same time, except that Class A,
Class B, Class C and Class Y can bear different transfer agent and
distribution expense rates.
E. Securities Lending
The Fund lends securities in its portfolio to certain broker-dealers or other
institutional investors. When entering into a securities loan transaction,
the Fund typically receives cash collateral from the borrower equal to at
least the value of the securities loaned, which is invested in temporary cash
investments. Credit Suisse, New York Branch, as the Fund's security lending
agent, manages the Fund's securities lending collateral. The income earned on
the investment of collateral is shared with the borrower and the lending
agent in payment of any rebate due to the borrower with respect to the
securities loan, and in compensation for the lending agent's services to the
Fund. The Fund also continues to receive interest or payments in lieu of
dividends on the securities loaned. Gain or loss on the value of the loaned
securities that may occur during the term of the loan will be for the account
of the Fund. The amount of the collateral is required to be adjusted daily to
reflect any price fluctuation in the value of the loaned securities. The Fund
has the right, under the lending agreement, to terminate the loan and recover
the securities from the borrower with prior notice. The Fund will be required
to return the cash collateral to the borrower and could suffer a loss if the
value of the collateral, as invested, has declined.
Pioneer Real Estate Shares | Semiannual Report | 6/30/09 31
F. Repurchase Agreements
With respect to repurchase agreements entered into by the Fund, the value of
the underlying securities (collateral), including accrued interest, is
required to be at least equal to or in excess of the value of the repurchase
agreement. The collateral for all repurchase agreements is held in
safekeeping in the customer-only account of the Fund's custodian or
subcustodians. The Fund's investment adviser, Pioneer Investment Management,
Inc. (PIM), is responsible for determining that the value of the collateral
remains at least equal to the repurchase price.
2. Management Agreement
PIM, a wholly owned indirect subsidiary of UniCredit, manages the Fund's
portfolio. Management fees are calculated daily at the annual rate of 0.80% of
the Fund's average daily net assets. PIM pays a portion of the fee it receives
from the Fund to AEW Capital Management, L.P. as compensation for sub-advisery
services to the Fund.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund. Included in "Due to affiliates" reflected on
the statement of Assets and Liabilities is $2,037 in management fees,
administrative costs and certain other fees payable to PIM at June 30, 2009.
3. Transfer Agent
PIMSS, a wholly owned indirect subsidiary of UniCredit, provides substantially
all transfer agent and shareowner services to the Fund at negotiated rates.
In addition, the Fund reimbursed PIMSS for out-of-pocket expenses related to
shareholder communications activities such as proxy and statement mailings,
outgoing phone calls and omnibus relationship contracts. For the six months
ended June 30, 2009, such out of pocket expenses by class of shares were as
follows:
- -------------------------------------------
Shareholder Communications:
- -------------------------------------------
Class A $33,564
Class B 12,259
Class C 7,184
Class Y 1,084
- -------------------------------------------
Total $54,091
===========================================
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $39,999 in transfer agent fees and shareholder communications
expense payable to PIMSS at June 30, 2009.
32 Pioneer Real Estate Shares | Semiannual Report | 6/30/09
4. Distribution Plan
The Fund has adopted a Distribution Plan pursuant to Rule 12b-1 of the
Investment Company Act of 1940 with respect to its Class A, Class B and Class C
shares. Pursuant to the Plan, the Fund pays PFD 0.25% of the average daily net
assets attributable to Class A shares as compensation for personal services
and/or account maintenance services or distribution services with regard to
Class A shares. Pursuant to the Plan, the Fund pays PFD 1.00% of the average
daily net assets attributable to Class B and Class C shares. The fee for Class
B and Class C shares consists of a 0.25% service fee and a 0.75% distribution
fee paid as compensation for personal services and/or account maintenance
services or distribution services with regard to Class B and Class C shares.
Prior to February 1, 2008, PFD was reimbursed under the Distribution Plan for
distribution expenses in an amount up to 0.25% of the average daily net assets
attributable to Class A shares. Included in "Due to affiliates" reflected on
the Statement of Assets and Liabilities is $695 in distribution fees payable to
PFD at June 30, 2009.
In addition, redemptions of each class of shares (except Class Y shares) may be
subject to a contingent deferred sales charge (CDSC). A CDSC of 1.00% may be
imposed on redemptions of certain net asset value purchases of Class A shares
within 18 months of purchase (within 12 months for purchases made on or after
April 1, 2009). Class B shares that are redeemed within five years of purchase
are subject to a CDSC at declining rates beginning at 4.0%, based on the lower
of cost or market value of shares being redeemed. Redemptions of Class C shares
within one year of purchase are subject to a CDSC of 1.00%, based on the lower
of cost or market value of shares being redeemed. Proceeds from the CDSC are
paid to PFD. For the six months ended June 30, 2009, CDSCs in the amount of
$6,647 were paid to PFD.
5. Expense Offset Arrangements
The Fund has entered into certain expense offset arrangements with PIMSS
resulting in a reduction in the Fund's total expenses due to interest earned on
cash held by PIMSS. For the six months ended June 30, 2009, the Fund's expenses
were reduced by $51 under such arrangements.
6. Line of Credit Facility
The Fund, along with certain other funds in the Pioneer Family of Funds (the
Funds), collectively participate in a $165 million committed, unsecured
revolving line of credit facility. Borrowings are used solely for temporary or
emergency purposes. The Fund may borrow up to the lesser of $165 million or the
limits set for borrowing by the Fund's prospectus and the 1940 Act. Interest on
collective borrowings is payable as follows: if the London Interbank Offered
Rate (LIBOR) on the related borrowing date is greater than or equal to the
Federal Funds Rate on such date, the loan bears interest at the LIBOR rate plus
Pioneer Real Estate Shares | Semiannual Report | 6/30/09 33
1.25% on an annualized basis, or if the LIBOR rate on the related borrowing
date is less then the Federal Funds Rate on such date, the loan bears interest
at the Federal Funds Rate plus 1.25% on an annualized basis. The Funds pay an
annual commitment fee for this facility. The commitment fee is allocated among
participating Funds based on an allocation schedule set forth in the credit
agreement. For the six months ended June 30, 2009, the Fund had no borrowings
under this agreement.
7. Subsequent Events
In preparing these financial statements, PIM has evaluated the impact of all
subsequent events and transactions for potential recognition or disclosure
through August 21, 2009, the date the financial statements were issued, and has
determined that there were no subsequent events requiring recognition or
disclosure in the financial statements.
34 Pioneer Real Estate Shares | Semiannual Report | 6/30/09
Trustees, Officers and Service Providers
Trustees Officers
John F. Cogan, Jr., Chairman John F. Cogan, Jr., President
David R. Bock Daniel K. Kingsbury, Executive Vice President
Mary K. Bush Mark E. Bradley, Treasurer
Benjamin M. Friedman Dorothy E. Bourassa, Secretary
Margaret B.W. Graham
Daniel K. Kingsbury
Thomas J. Perna
Marguerite A. Piret
Stephen K. West
Investment Adviser and Administrator
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Bingham McCutchen LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during
the most recent 12-month period ended June 30 is publicly available to
shareowners at pioneerinvestments.com. This information is also available on
the Securities and Exchange Commission's web site at http://www.sec.gov.
Pioneer Real Estate Shares | Semiannual Report | 6/30/09 35
This page for your notes.
36 Pioneer Real Estate Shares | Semiannual Report | 6/30/09
How To Contact Pioneer
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
- --------------------------------------------------------------------------------
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Telecommunications Device for the Deaf (TDD) 1-800-225-1997
Write to us:
- --------------------------------------------------------------------------------
PIMSS, Inc.
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address ask.pioneer@pioneerinvestments.com
(for general questions about Pioneer only)
Visit our web site: pioneerinvestments.com
This report must be accompanied by a prospectus.
The Fund files a complete schedule of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the Commission's
web site at http://www.sec.gov. The filed form may also be viewed and copied at
the Commission's Public Reference Room in Washington, DC. Information regarding
the operations of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
ITEM 2. CODE OF ETHICS.
(a) Disclose whether, as of the end of the period covered by the report, the
registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions, regardless of
whether these individuals are employed by the registrant or a third party. If
the registrant has not adopted such a code of ethics, explain why it has not
done so.
The registrant has adopted, as of the end of the period covered by this report,
a code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer and controller.
(b) For purposes of this Item, the term "code of ethics" means written standards
that are reasonably designed to deter wrongdoing and to promote:
(1) Honest and ethical conduct, including the ethical handling of actual
or apparent conflicts of interest between personal and professional
relationships;
(2) Full, fair, accurate, timely, and understandable disclosure in
reports and documents that a registrant files with, or submits to, the
Commission and in other public communications made by the registrant;
(3) Compliance with applicable governmental laws, rules, and
regulations;
(4) The prompt internal reporting of violations of the code to an
appropriate person or persons identified in the code; and
(5) Accountability for adherence to the code.
(c) The registrant must briefly describe the nature of any amendment, during the
period covered by the report, to a provision of its code of ethics that applies
to the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, and that relates to any element of the code of
ethics definition enumerated in paragraph (b) of this Item. The registrant must
file a copy of any such amendment as an exhibit pursuant to Item 10(a), unless
the registrant has elected to satisfy paragraph (f) of this Item by posting its
code of ethics on its website pursuant to paragraph (f)(2) of this Item, or by
undertaking to provide its code of ethics to any person without charge, upon
request, pursuant to paragraph (f)(3) of this Item.
The registrant has made no amendments to the code of ethics during the period
covered by this report.
(d) If the registrant has, during the period covered by the report, granted a
waiver, including an implicit waiver, from a provision of the code of ethics to
the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, that relates to one or more of the items set forth
in paragraph (b) of this Item, the registrant must briefly describe the nature
of the waiver, the name of the person to whom the waiver was granted, and the
date of the waiver.
Not applicable.
(e) If the registrant intends to satisfy the disclosure requirement under
paragraph (c) or (d) of this Item regarding an amendment to, or a waiver from,
a provision of its code of ethics that applies to the registrant's principal
executive officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions and that relates to any
element of the code of ethics definition enumerated in paragraph (b) of this
Item by posting such information on its Internet website, disclose the
registrant's Internet address and such intention.
Not applicable.
(f) The registrant must:
(1) File with the Commission, pursuant to Item 10(a), a copy of its code
of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer or controller,
or persons performing similar functions, as an exhibit to its annual
report on this Form N-CSR;
(2) Post the text of such code of ethics on its Internet website and
disclose, in its most recent report on this Form N-CSR, its Internet
address and the fact that it has posted such code of ethics on its
Internet website; or
(3) Undertake in its most recent report on this Form N-CSR to provide to
any person without charge, upon request, a copy of such code of ethics
and explain the manner in which such request may be made.
See Item 10(2)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrant's board of trustees has determined that
the registrant either:
(i) Has at least one audit committee financial expert serving on its audit
committee; or
(ii) Does not have an audit committee financial expert serving on its audit
committee.
The registrant's Board of Trustees has determined that the registrant has at
least one audit committee financial expert.
(2) If the registrant provides the disclosure required by paragraph
(a)(1)(i) of this Item, it must disclose the name of the audit committee
financial expert and whether that person is "independent." In order to be
considered "independent" for purposes of this Item, a member of an audit
committee may not, other than in his or her capacity as a member of the audit
committee, the board of trustees, or any other board committee:
(i) Accept directly or indirectly any consulting, advisory, or other
compensatory fee from the issuer; or
(ii) Be an "interested person" of the investment company as defined in
Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19)).
Ms. Marguerite A. Piret, an independent trustee, is such an audit committee
financial expert.
(3) If the registrant provides the disclosure required by paragraph (a)(1)
(ii) of this Item, it must explain why it does not have an audit committee
financial expert.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption AUDIT FEES, the aggregate fees billed for each
of the last two fiscal years for professional services rendered by the principal
accountant for the audit of the registrant's annual financial statements or
services that are normally provided by the accountant in connection with
statutory and regulatory filings or engagements for those fiscal years.
N/A
(b) Disclose, under the caption AUDIT-RELATED FEES, the aggregate fees billed in
each of the last two fiscal years for assurance and related services by the
principal accountant that are reasonably related to the performance of the audit
of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
N/A
(c) Disclose, under the caption TAX FEES, the aggregate fees billed in each of
the last two fiscal years for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning. Registrants shall
describe the nature of the services comprising the fees disclosed under this
category.
N/A
(d) Disclose, under the caption ALL OTHER FEES, the aggregate fees billed in
each of the last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs (a) through
(c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
N/A
(e) (1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
PIONEER FUNDS
APPROVAL OF AUDIT, AUDIT-RELATED, TAX AND OTHER SERVICES
PROVIDED BY THE INDEPENDENT AUDITOR
SECTION I - POLICY PURPOSE AND APPLICABILITY
The Pioneer Funds recognize the importance of maintaining the independence of
their outside auditors. Maintaining independence is a shared responsibility
involving Pioneer Investment Management, Inc ("PIM"), the audit committee and
the independent auditors.
The Funds recognize that a Fund's independent auditors: 1) possess knowledge of
the Funds, 2) are able to incorporate certain services into the scope of the
audit, thereby avoiding redundant work, cost and disruption of Fund personnel
and processes, and 3) have expertise that has value to the Funds. As a result,
there are situations where it is desirable to use the Fund's independent
auditors for services in addition to the annual audit and where the potential
for conflicts of interests are minimal. Consequently, this policy, which is
intended to comply with Rule 210.2-01(C)(7), sets forth guidelines and
procedures to be followed by the Funds when retaining the independent audit firm
to perform audit, audit-related tax and other services under those
circumstances, while also maintaining independence.
Approval of a service in accordance with this policy for a Fund shall also
constitute approval for any other Fund whose pre-approval is required pursuant
to Rule 210.2-01(c)(7)(ii).
In addition to the procedures set forth in this policy, any non-audit services
that may be provided consistently with Rule 210.2-01 may be approved by the
Audit Committee itself and any pre-approval that may be waived in accordance
with Rule 210.2-01(c)(7)(i)(C) is hereby waived.
Selection of a Fund's independent auditors and their compensation shall be
determined by the Audit Committee and shall not be subject to this policy.
SECTION II - POLICY
- ---------------- -------------------------------- -------------------------------------------------
SERVICE SERVICE CATEGORY DESCRIPTION SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
CATEGORY
- ---------------- -------------------------------- -------------------------------------------------
I. AUDIT Services that are directly o Accounting research assistance
SERVICES related to performing the o SEC consultation, registration
independent audit of the Funds statements, and reporting
o Tax accrual related matters
o Implementation of new accounting
standards
o Compliance letters (e.g. rating agency
letters)
o Regulatory reviews and assistance
regarding financial matters
o Semi-annual reviews (if requested)
o Comfort letters for closed end
offerings
- ---------------- -------------------------------- -------------------------------------------------
II. Services which are not o AICPA attest and agreed-upon procedures
AUDIT-RELATED prohibited under Rule o Technology control assessments
SERVICES 210.2-01(C)(4) (the "Rule") o Financial reporting control assessments
and are related extensions of o Enterprise security architecture
the audit services support the assessment
audit, or use the
knowledge/expertise gained
from the audit procedures as a
foundation to complete the
project. In most cases, if
the Audit-Related Services are
not performed by the Audit
firm, the scope of the Audit
Services would likely
increase. The Services are
typically well-defined and
governed by accounting
professional standards (AICPA,
SEC, etc.)
- ---------------- -------------------------------- -------------------------------------------------
------------------------------------- ------------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the audit period for all services and related fees
pre-approved specific service reported at each regularly
subcategories. Approval of the scheduled Audit Committee
independent auditors as meeting.
auditors for a Fund shall
constitute pre approval for
these services.
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the fund fiscal year within services and related fees
a specified dollar limit (including comparison to
for all pre-approved specified dollar limits)
specific service subcategories reported quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limit for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for Audit-Related
Services not denoted as
"pre-approved", or
to add a specific service
subcategory as "pre-approved"
------------------------------------- ------------------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- --------------------------- -----------------------------------------------
III. TAX SERVICES Services which are not o Tax planning and support
prohibited by the Rule, o Tax controversy assistance
if an officer of the Fund o Tax compliance, tax returns, excise
determines that using the tax returns and support
Fund's auditor to provide o Tax opinions
these services creates
significant synergy in
the form of efficiency,
minimized disruption, or
the ability to maintain a
desired level of
confidentiality.
- ----------------------- --------------------------- -----------------------------------------------
- ------------------------------------- -------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------- -------------------------
- ------------------------------------- -------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year all such services and
within a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for tax services not
denoted as pre-approved, or to add a specific
service subcategory as
"pre-approved"
- ------------------------------------- -------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- --------------------------- -----------------------------------------------
IV. OTHER SERVICES Services which are not o Business Risk Management support
prohibited by the Rule, o Other control and regulatory
A. SYNERGISTIC, if an officer of the Fund compliance projects
UNIQUE QUALIFICATIONS determines that using the
Fund's auditor to provide
these services creates
significant synergy in
the form of efficiency,
minimized disruption,
the ability to maintain a
desired level of
confidentiality, or where
the Fund's auditors
posses unique or superior
qualifications to provide
these services, resulting
in superior value and
results for the Fund.
- ----------------------- --------------------------- -----------------------------------------------
- --------------------------------------- ------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------- --------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year within all such services and
a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for "Synergistic" or
"Unique Qualifications" Other
Services not denoted as
pre-approved to the left, or to
add a specific service
subcategory as "pre-approved"
- ------------------------------------- --------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- ------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PROHIBITED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- ------------------------- -----------------------------------------------
PROHIBITED SERVICES Services which result 1. Bookkeeping or other services
in the auditors losing related to the accounting records or
independence status financial statements of the audit
under the Rule. client*
2. Financial information systems design
and implementation*
3. Appraisal or valuation services,
fairness* opinions, or
contribution-in-kind reports
4. Actuarial services (i.e., setting
actuarial reserves versus actuarial
audit work)*
5. Internal audit outsourcing services*
6. Management functions or human
resources
7. Broker or dealer, investment
advisor, or investment banking services
8. Legal services and expert services
unrelated to the audit
9. Any other service that the Public
Company Accounting Oversight Board
determines, by regulation, is
impermissible
- ----------------------- ------------------------- -----------------------------------------------
- ------------------------------------------- ------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------------- ------------------------------
o These services are not to be o A summary of all
performed with the exception of the(*) services and related
services that may be permitted fees reported at each
if they would not be subject to audit regularly scheduled
procedures at the audit client (as Audit Committee meeting
defined in rule 2-01(f)(4)) level will serve as continual
the firm providing the service. confirmation that has
not provided any
restricted services.
- ------------------------------------------- ------------------------------
- --------------------------------------------------------------------------------
GENERAL AUDIT COMMITTEE APPROVAL POLICY:
o For all projects, the officers of the Funds and the Fund's auditors will each
make an assessment to determine that any proposed projects will not impair
independence.
o Potential services will be classified into the four non-restricted service
categories and the "Approval of Audit, Audit-Related, Tax and Other
Services" Policy above will be applied. Any services outside the specific
pre-approved service subcategories set forth above must be specifically
approved by the Audit Committee.
o At least quarterly, the Audit Committee shall review a report summarizing the
services by service category, including fees, provided by the Audit firm as
set forth in the above policy.
- --------------------------------------------------------------------------------
(2) Disclose the percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
N/A
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountant's engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
N/A
(g) Disclose the aggregate non-audit fees billed by the registrant's accountant
for services rendered to the registrant, and rendered to the registrant's
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
N/A
(h) Disclose whether the registrant's audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrant's investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
The Fund's audit committee of the Board of Trustees has
considered whether the provision of non-audit services that
were rendered to the Affiliates (as defined) that were not pre-
approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of
Regulation S-X is compatible with maintaining the principal
accountant's independence.
Item 5. Audit Committee of Listed Registrants
(a) If the registrant is a listed issuer as defined in Rule 10A-3
under the Exchange Act (17 CFR 240.10A-3), state whether
or not the registrant has a separately-designated standing
audit committee established in accordance with Section
3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)).
If the registrant has such a committee, however designated,
identify each committee member. If the entire board of directors
is acting as the registrants audit committee as specified in
Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)),
so state.
N/A
(b) If applicable, provide the disclosure required by Rule 10A-3(d)
under the Exchange Act (17 CFR 240.10A-3(d)) regarding an exemption
from the listing standards for audit committees.
N/A
Item 6. Schedule of Investments.
File Schedule I Investments in securities of unaffiliated issuers
as of the close of the reporting period as set forth in 210.12-
12 of Regulation S-X [17 CFR 210.12-12], unless the schedule is
included as part of the report to shareholders filed under Item
1 of this Form.
Included in Item 1
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
Not applicable to open-end management investment companies.
Item 8. Portfolio Managers of Closed-End Management Investment
Companies.
(a) If the registrant is a closed-end management investment company that
is filing an annual report on this Form N-CSR,provide the following
information:
(1) State the name, title, and length of service of the person or persons
employed by or associated with the registrant or an investment adviser
of the registrant who are primarily responsible for the day-to-day management
of the registrants portfolio (Portfolio Manager). Also state each Portfolio
Managers business experience during the past 5 years.
Not applicable to open-end management investment companies.
Item 9. Purchases of Equity Securities by Closed-End Management
Investment Company and Affiliated Purchasers.
(a) If the registrant is a closed-end management investment company,
in the following tabular format, provide the information specified in
paragraph (b) of this Item with respect to any purchase made by or on
behalf of the registrant or any affiliated purchaser, as defined in
Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of
shares or other units of any class of the registrants equity securities
that is registered by the registrant pursuant to Section 12 of the
Exchange Act (15 U.S.C. 781). Instruction to paragraph (a). Disclose
all purchases covered by this Item, including purchases that do not
satisfy the conditions of the safe harbor of Rule 10b-18 under the
Exchange Act (17 CFR 240.10b-18), made in the period covered by the
report. Provide disclosures covering repurchases made on a monthly basis.
For example, if the reporting period began on January 16 and ended on
July 15, the chart would show repurchases for the months from January 16
through February 15, February 16 through March 15, March 16 through
April 15, April 16 through May 15, May 16 through June 15, and June 16
through July 15.
Not applicable to open-end management investment companies.
Item 10. Submission of Matters to a Vote of Security Holders.
Describe any material changes to the procedures by which shareholders
may recommend nominees to the registrants board of directors, where
those changes were implemented after the registrant last provided
disclosure in response to the requirements of Item 7(d)(2)(ii)(G)
of Schedule 14A (17 CFR 240.14a-101), or this Item.
There have been no material changes to the procedures by which the
shareholders may recommend nominees to the registrants board of
directors since the registrant last provided disclosure in response
to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14(A) in
its definitive proxy statement, or this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive officer or
officers and principal financial officer or officers, or persons performing
similar functions, about the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-2(c) under the Act (17 CFR
270.30a-2(c))) based on their evaluation of these controls and procedures as of
a date within 90 days of the filing date of the report that includes the
disclosure required by this paragraph.
The registrant's principal executive officer
and principal financial officer have
concluded that the registrant's disclosure
controls and procedures are effective based
on their evaluation of these controls and
procedures as of a date within 90 days of the
filing date of this report.
(b) Disclose whether or not there were significant changes in the registrant's
internal controls or in other factors that could significantly affect these
controls subsequent to the date of their evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
There were no significant changes in the
registrant's internal control over financial
reporting that occurred during the second
fiscal quarter of the period covered by this
report that have materially affected, or are
reasonably likely to materially affect, the
registrant's internal control over financial
reporting.
The registrant's principal executive officer and principal financial
officer, however, voluntarily are reporting the following information:
In August of 2006 the registrant's investment adviser
enhanced its internal procedures for reporting performance
information required to be included in prospectuses.
Those enhancements involved additional internal controls
over the appropriateness of performance data
generated for this purpose. Such enhancements were made
following an internal review which identified
prospectuses relating to certain classes of shares of
a limited number of registrants where, inadvertently,
performance information not reflecting the deduction of
applicable sales charges was included. Those prospectuses
were revised, and the revised prospectuses were distributed to
shareholders.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
(b) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2 under the Act
(17 CFR 270.30a-2).
Filed herewith.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pioneer Real Estate Shares
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr, President
Date August 28, 2009
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr., President
Date August 28, 2009
By (Signature and Title)* /s/ Mark Bradley
Mark Bradley, Treasurer
Date August 28, 2009
* Print the name and title of each signing officer under his or her signature.